Saudi Arabia Property Finance After the 2026 Ownership Reform

The reform, administered through the government's Saudi Properties portal, permits non-Saudi individuals, foreign companies, Saudi companies with foreign shareholders, non-profit entities and diplomatic missions to own property in geographic zones to be defined by the Council of Ministers together with the real estate regulator, REGA. Riyadh and Jeddah are the main focus, and no Premium Residency is required. In Mecca and Medina ownership remains tightly restricted, and reports differ on exactly which foreign-linked entities may participate there, so check the official text. Reports also mention combined fees and taxes of around 10% on foreign ownership and heavy penalties for false declarations. Which districts are in scope depends on the zoning lists REGA publishes, so confirm each address.

For an overview of rules and process, see our Saudi Arabia buying guide. Typical stock includes apartments, villas and houses, plus land and commercial property.

Saudi banks, including Al Rajhi, Riyad Bank, Saudi National Bank, Banque Saudi Fransi and Alinma, offer home finance largely through Islamic structures such as murabaha and ijara. These are designed for employees with a salary transferred to the bank, a residence permit (iqama) and stable employment. The Saudi Central Bank (SAMA) caps loan-to-value, with limits historically higher for citizens buying a first home than for expatriates, whose ceiling is typically around 70% or less. Down payments, maximum tenor and age limits vary by bank.

We could not confirm any bank programme designed specifically for non-resident foreigners under the 2026 law. Treat anything advertised as such with caution until a bank gives written terms. The riyal is pegged to the US dollar, so profit rates track US rates plus a margin. Test affordability using the mortgage calculator.

A real estate transaction tax of 5% of the price applies to property sales instead of VAT, and it has generally been paid by the seller, though contracts can allocate it. Notary and registration charges through the government platforms are modest, brokers charge about 2.5% and the new regime reportedly adds foreign-ownership fees that bring the combined burden to around 10%. Off-plan projects must be registered in the Wafi system and funds held in escrow. Always verify the up-to-date fee schedule before signing.

1. Confirm the property sits inside a zone open to foreign ownership and obtain the title deed details.
2. Register on the Saudi Properties portal and check your eligibility category.
3. Verify the seller's title and any encumbrances with a Saudi lawyer.
4. For off-plan, check the Wafi registration and escrow arrangements.
5. Pay through traceable bank transfers and complete the transfer electronically.

Because the framework is new, keep documents of every step and avoid informal arrangements, such as nominee ownership.

Saudi Arabia is among the larger real-estate markets in the Gulf, with demand driven by population growth and national development programmes. Read the market analysis, look at cheap listings and under 100,000 properties, and browse all Saudi Arabia listings. Policy is evolving, so revisit the rules before each stage of the purchase.